HB2621 - 572R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 15, chapter 7, article 4, Arizona Revised Statutes, is amended by adding section 15-768, to read:

START_STATUTE15-768. Pupils residing in unorganized territory; definitions

A. The parent of a pupil who resides in an unorganized territory may request a child find screening, a special EDUCATION evaluation or enrollment of the pupil in the adjoining school district that is geographically closest to the pupil's residence. A school district that receives a request pursuant to this subsection is responsible for all child find activities for that pupil. If a parent of a pupil who is a child with a disability as defined in section 15-761 requests enrollment of the pupil in a school district pursuant to this subsection, the school district is responsible for providing a free appropriate public education to the pupil.

B. Each program that provides early intervention services pursuant to part C of the individuals with disabilities education act (20 United States Code sections 1401 through 1485) to pupils who reside in unorganized territories shall initiate the process for transitioning the pupils from part C to part B of the individuals with disabilities education act by notifying the department of education and referring the pupil to the adjoining school district that is geographically closest to the pupil's residence for a part B evaluation and transition at least ninety days before the pupil's third birthday. If a program determines that a pupil who resides in an unorganized territory is eligible for early intervention services pursuant to part C of the individuals with disabilities education act more than forty-five days but fewer than ninety days before the pupil's third birthday, the program shall initiate the process for transitioning the pupil from part C to part B of the individuals with disabilities act pursuant to this subsection as soon as possible, consistent WITH federal law.

c. If the adjoining school district that is geographically closest to the residence of a pupil described in subsection B of this section conducts a special educati0n evaluation of the pupil and determines that The pupil is eligible for special education and related services under part B of the individuals with disabilities education act, the pupil's parents may request enrollment of the pupil in the school district at any time and the school district shall inform the pupil's parent that the pupil's parent may request enrollment of the pupil. On receipt of a request for enrollment pursuant to this subsection, a school district shall prepare a certificate of educational convenience application for the pupil as prescribed by section 15-825 and offer a free appropriate public education to the pupil.

D. if A pupil resides in an unorganized territory and either is parentally placed in a private school or attends a homeschool, the following apply:

1. The pupil Retains the following rights:

(a) The rights established by 20 united states code section 1412, including the rights to be identified, located and evaluated for eligibility under part B of the individuals with disabilities education act.

(b) the right to equitable services under proportionate share funding pursuant to 34 code of federal REGULATIONS sections 300.130 through 300.144.

2. The school district that is responsible for all child find activities and for conducting a special education evaluation for the pupil is:

(a) If the pupil is parentally placed in a nonprofit private school that is located within the boundaries of a school district, the school district in which the private school is located.

(b) If the pupil is parentally placed in a nonprofit private school that is located in an unorganized territory, the adjoining school district that is geographically closest to the private school.

(c) If the pupil attends a homeschool or is parentally placed in a private school that is not a nonprofit, the adjoining school district that is geographically closest to the pupil's residence.

3. If the pupil has been found to be eligible for special education or related services under part B of the individuals with disabilities education act, the pupil's parents may request from the school district that is responsible for the pupil pursuant to paragraph 2 of this subsection either or both of the following:

(a) An evaluation pursuant to 20 united states code section 1412(a)(3)(a).

(b) A meeting to discuss equitable services and the development of a service plan pursuant to 34 code of federal regulations sections 300.130 through 300.144.

E. For the purposes of this section:

1. "Child find activities" means state obligations pursuant to 20 united states code section 1412(a)(3), the federal regulations issued pursuant to the individuals with disabilities education act and the rules adopted by the state board of education relating to the identification and referral of children with disabilities by public schools.

2. "Free appropriate public education" has the same meaning prescribed in 20 United States code section 1401.

3. "Homeschool" has the same meaning prescribed in section 15-802.

4. "Unorganized territory" has the same meaning prescribed in section 15-825.

5. "related services" has the same meaning prescribed in 20 united states code section 1401.

6. "Special education" has the same meaning prescribed in 20 united states code section 1401.

7. "special education evaluation" means an evaluation conducted pursuant to section 15-766 and rules adopted by the state board of education.END_STATUTE

Sec. 2. Section 15-816, Arizona Revised Statutes, is amended to read:

START_STATUTE15-816. Definitions

In this article, unless the context otherwise requires:

1. "Nonresident pupil" means a pupil who resides in this state and who is enrolled in or is seeking enrollment in a school district other than the school district in which the pupil resides.

2. "Open enrollment" means a policy that is adopted and implemented by a school district governing board to allow resident transfer pupils to enroll in any school within the school district, to allow resident pupils to enroll in any school located within other school districts in this state and to allow nonresident pupils to enroll in any school within the district pursuant to section 15-816.01.

3. "Resident pupil" means a pupil who meets any of the following:

(a) Whose residence is within the attendance area of a school.

(b) Who resides in an unorganized territory as defined in section 15-825 and whose residence adjoins a boundary of the school district.

(d) Who is placed as described in section 15-825, subsection B.

4. "Resident school" means a school that is within the designated attendance area in which a pupil resides.

5. "Resident transfer pupil" means a resident pupil who is enrolled in or seeking enrollment in a school that is within the school district but outside the attendance area of the pupil's residence.END_STATUTE

Sec. 3. Section 15-823.01, Arizona Revised Statutes, is amended to read:

START_STATUTE15-823.01. Admission of nonresident children; services or accommodations for children with disabilities; active military duty; posting requirement; definitions

A. Notwithstanding any other law, a pupil child complies with the residency requirements for school attendance in a local education agency or for services or accommodations if the parent of the ~~pupil~~ child is transferred to or is pending transfer to a military installation within this state while on active military duty pursuant to an official military order.

B. A local education agency shall accept an application for enrollment and course registration by ~~electronic~~ any means, including by electronic means or a remote application, for a pupil who meets the requirements prescribed in subsection A of this section, including enrollment in a specific school or program within the local education agency.

C. The parent of a ~~pupil~~ child who meets the requirement prescribed in subsection A of this section shall provide proof of ~~residence~~ residency to the local education agency within ten days after the arrival date provided on official documentation. The parent may use the address of any of the following as proof of ~~residence~~ residency for the purposes of this subsection:

1. A temporary on-base billeting facility.

2. Temporary off-base lodging.

2. 3. A purchased or leased home or apartment.

3. 4. Any federal government housing or off-base military housing, including off-base military housing that may be provided through a public-private venture.

5. Any other temporary housing.

D. If a school district is notified that a child who meets the requirement prescribed in subsection A of this section is receiving or might be eligible to receive services or accommodations, the school district shall:

1. Promptly coordinate with the child's parents and the child's previous school, if any, pursuant to section 15-1911 to ensure the timely exchange of records and to reduce any delays in the child receiving comparable services or accommodations through the school district or delays in the implementation of an individualized family service plan, individualized education program or section 504 plan as defined in section 15-731.

2. accept unofficial records that are provided by the child's parent, pending validation by the official records, pursuant to section 15-1911, article IV, subsection A.

3. On enrollment of the child pursuant to subsection B of this section:

(a) Provide the child with services or accommodations that are comparable to the services or accommodations that are described in the child's previously approved individualized education program or section 504 plan as defined in section 15-731, in consultation with the child's parents, until the school district conducts an assessment or develops a new individualized education program, if appropriate.

(b) Either adopt and implement the child's previously approved individualized education program or develop, adopt and implement a new individualized education program for the child not later than thirty calendar days after the child enrolls in the school district.

E. The department of education shall post information on the requirements of this section, including requirements relating to eligibility and required documentation, on the department's website.

D. F. For the purposes of this section:

1. "Active military duty" means full-time military duty status in the active uniformed service of the United States, including members of the national guard and the state military reserve on active duty orders.

2. "Military installation" means a base, camp, post, station, yard, center, homeport facility for any ship or other installation under the jurisdiction of the United States department of defense or the United States coast guard.

3. "Parent" has the same meaning prescribed in section 15-761.

4. "Services or accommodations" means any services or accommodations that are provided through a local education agency pursuant to the individuals with disabilities education act (p.l. 91-260; 84 stat. 175; 20 United States Code sections 1400 through 1482), section 504 of the rehabilitation act of 1973 (p.l. 93-112; 87 stat. 355; 29 United States Code section 794) or title II of the Americans with disabilities act of 1990 (p.l. 101-336; 104 stat. 327; 42 United States Code sections 12131 through 12165). END_STATUTE

Sec. 4. Section 15-824, Arizona Revised Statutes, is amended to read:

START_STATUTE15-824. Admission of pupils of other school districts; homeless children; tuition charges; definitions

A. The governing board of a school district shall admit pupils from another school district or area as follows:

1. On the presentation of a certificate of educational convenience issued by the county school superintendent pursuant to section 15-825.

2. For three hundred fifty or fewer pupils, to a high school without the presentation of a certificate of educational convenience, if the pupil is a resident of a common school district within this state that is not within a high school district and that does not offer instruction in the pupil's grade. The three hundred fifty or fewer pupil limitation prescribed in this paragraph does not apply to a small isolated school district as defined in section 15-901. The school membership of such pupils is deemed, for the purposes of determining student count and providing a free and appropriate public education pursuant to the individuals with disabilities education act (20 United States Code chapter 33) and for apportionment of state aid, to be enrollment in the school district of the pupil's attendance.

3. To a high school without the presentation of a certificate of educational convenience if the pupil is a resident of a transporting school district that does not offer instruction in the pupil's grade. Tuition shall be charged as prescribed in subsection E of this section for each pupil who is admitted pursuant to this paragraph. For the purposes of determining student count and for apportionment of state aid, the school membership of these pupils is deemed to be enrollment in the school district of the pupil's residence.

B. The residence of the person having legal custody of the pupil is considered the residence of the pupil, except as provided in subsection C of this section and in section 15-825, subsection subsections B and C.

C. The current residence of a homeless pupil who does not reside with the person having legal custody of the pupil is considered to be the residence of the homeless pupil if the person having legal custody of the pupil is a resident of the United States. For the purposes of this subsection, "homeless pupil" means a pupil who has a primary residence that is:

1. A supervised publicly or privately operated shelter designed to provide temporary living accommodations.

2. An institution that provides a temporary residence for individuals intended to be institutionalized.

3. A public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings.

D. The school enrollment of a pupil who is a resident of this state or who is admitted to a school district under section 15-823, subsection B, C, E, F or H is deemed, for the purpose of determining student count and for apportionment of state aid, to be enrollment in the school district of actual attendance, except as provided in section 15-825, subsection A, paragraph 1 and subsection A, paragraph 3 of this section and except for pupils for whom the superintendent of public instruction is charged tuition pursuant to section 15-825, subsections B, C and D G and section 15-976 or for whom another school district is charged tuition as provided in subsections E and G of this section.

E. If tuition is required to be charged for pupils attending school in a school district other than that of their residence, the tuition shall be determined and paid in the following manner:

1. The number of high school pupils for which tuition may be charged to a transporting school district is equal to the average daily membership in the district of attendance from the transporting school district for the prior fiscal year. This number may be adjusted if the transporting school district increases its revenue control limit and district support level.

2. The tuition for pupils attending school in a school district other than that of their residence, except pupils provided for by section 15-825, subsections B, C and D G and any pupils included in the definition of child with a disability in section 15-761, shall not exceed the cost per student count of the school district attended, as determined for the current school year. Tuition for pupils included in the definition of child with a disability in section 15-761 shall not exceed the actual cost of the school attended for each pupil as determined for the current year. The school district of attendance shall not include in the cost per student count a charge for transportation if no transportation is provided, and the charge for transportation shall not exceed the actual costs of providing transportation for the pupils served, as prescribed in the uniform system of financial records. The school district of attendance shall provide the school district of residence with the final tuition charge for the current year and with an estimate of the budget year's tuition charge by May 1 of the current year. The school district of residence shall pay at least one-fourth of the total amount of the estimated tuition by September 30, December 31 and March 31, and it shall pay the remaining amount it owes after adjustments are made by June 30.

3. Notwithstanding paragraph 2 of this subsection and subsection G of this section, if two school districts enter into a voluntary agreement for the payment of tuition, the agreement shall specify the method for computing the tuition amount and the timing of the payments. The agreement shall not be longer than five consecutive years. If two school districts enter into an agreement and choose to renew the agreement, each renewal shall not be longer than five consecutive years. The agreement shall specify that a parent or legal guardian of a pupil affected by a tuition agreement entered pursuant to this section or section 15-816.01 may choose not to send the pupil or pupils to a school district or school that is a party to the agreement.

4. Tuition of pupils as provided in section 15-825, subsection D G shall not exceed the excess costs for group B children with disabilities minus the amount generated by the equalization base as determined in section 15-971, subsection A for these pupils. A school district may submit to the superintendent of public instruction a record of actual excess costs to educate a group B child with a disability if the costs are higher than the calculated excess costs or if a pupil has been placed in a private school for special education services. The superintendent shall determine if the additional costs will be paid, and if the costs are paid, whether the additional costs will be paid by the state or the resident district.

5. The amount received representing contributions to capital outlay as provided in subsection G, paragraph 1, subdivision (b) of this section shall be applied to the capital outlay fund or the debt service fund of the school district.

6. The amount received representing contributions to debt service as provided in subsection G, paragraph 1, subdivision (c) of this section shall be applied to the debt service fund of the school district if there is one. Otherwise the amount shall be credited to the capital outlay fund of the school district.

F. A school district may submit to the superintendent of public instruction a record of actual costs paid by the school district to educate a pupil who qualifies for a certificate of educational convenience under section 15-825, subsection B or C. If the actual costs for that pupil exceed the costs per student count computed pursuant to subsection G of this section, the superintendent of public instruction shall reimburse the school district for these additional costs subject to legislative appropriation.

G. For the purposes of this section:

1. "Costs per student count" means the sum of the following for the common or high school portion of the school district attended, whichever is applicable to the pupil involved, as prescribed in the uniform system of financial records:

(a) The actual school district expenditures for the regular education program subsection of the maintenance and operation section of the budget divided by the school district's student count for the common or high school portion of the school district, whichever is applicable.

(b) The actual school district expenditures for the capital outlay section of the budget as provided in sections 15-903 and 15-905 excluding expenditures for transportation equipment and buildings if no transportation is provided and expenditures for the acquisition of building sites, divided by the school district's student count for the common or high school portion of the school district, whichever is applicable.

(c) The actual school district expenditures for debt service divided by the school district's student count for the common or high school portion of the school district, whichever is applicable.

2. "Legal custody" means:

(a) Custody exercised by the natural or adoptive parents with whom a pupil resides.

(b) Custody granted by order of a court of competent jurisdiction to a person or persons with whom a pupil resides unless the primary purpose for which custody was requested was to circumvent the payment of tuition as provided in this section. END_STATUTE

Sec. 5. Section 15-825, Arizona Revised Statutes, is amended to read:

START_STATUTE15-825. Certificates of educational convenience; issuance; effect on enrollment records; reporting requirements; posting requirements; definitions

A. A pupil who is precluded by distance, lack of adequate transportation facilities or a parent's or guardian's employment from attending a school in the school district or county of the pupil's residence or who resides in unorganized territory may apply to the pupil's school district of residence or, for a pupil who resides in unorganized territory, the school district of attendance for a certificate of educational convenience. If a pupil who resides in unorganized territory does not have a school district of attendance and seeks to apply for a certificate of educational convenience enroll in a public school in this state, the pupil's parent shall enroll the pupil in a school pursuant to article 1.1 of this chapter and apply to the school district that operates that school for a certificate of educational convenience request enrollment of the pupil in the adjoining school district that is geographically closest to the pupil's residence by submitting online enrollment paperwork to the school district, by attempting to enroll the pupil in person at a school district office or at a school that is operated by the school district, or by requesting enrollment assistance in a telephonic, electronic or in-person communication with the school district or a school that is operated by the school district. A school district that receives an application a request for enrollment pursuant to this subsection shall submit the a completed certificate of educational convenience application for the pupil to the county school superintendent electronically, in person or by regular mail not later than five business days after receiving the request and any required documentation, except that a school district may submit the application by regular mail only if the school district CANNOT electronically submit the application. If it appears to the county school superintendent that it is not feasible for the pupil to attend a school in the school district or county of residence, the county school superintendent shall issue a certificate of educational convenience authorizing the pupil to attend a school in an adjoining school district or county, whether within or without this state. A school district that receives a request for enrollment or an application for a certificate of educational convenience pursuant to this subsection may not delay child find activities, parental consent for a special education evaluation or timelines under 34 code of federal regulations section 300.301 or 300.323 because a certificate of educational convenience application is processing. If a certificate of educational convenience is issued as provided in this subsection, the school enrollment of a pupil is as follows:

1. The school enrollment of a pupil who is precluded from attending a school in this state and who must attend school in another state, when certified to the county school superintendent by the official in charge of the school attended, is deemed for the purpose of determining student count to be enrollment in the school of the county or school district of the student's residence.

2. The school enrollment of a pupil from unorganized territory or from another school district is deemed for the purpose of determining student count to be enrollment in the school district of actual attendance.

B. The county school superintendent of any county in which a pupil is placed as described in this subsection shall issue a certificate of educational convenience for the pupil to attend school in the school district or adjoining school district to that in which the pupil is placed by an a state placing agency of this state or a state or federal court of competent jurisdiction if the pupil is placed in one of the following:

1. A state rehabilitation or corrective institution.

2. A foster home or child care agency or institution that is licensed and supervised by the department of child safety or the department of health services.

3. A residential facility that is operated or supported by the department of economic security or the department of health services.

4. Under the supervision of the department of juvenile corrections, a residence pursuant to the interstate compact on juveniles. Notwithstanding section 41-1959, the state placing agency, department or institution shall provide the school district of attendance with the necessary information to enable the district to obtain a certificate of educational convenience pursuant to this subsection.

C. If a pupil described in subsection B of this section seeks to enroll in the school district or adjoining school district to that in which the pupil is placed, the pupil's parent shall request enrollment of the pupil by submitting online enrollment paperwork to the school district, by attempting to enroll the pupil in person at a school district office or at a school that is operated by the school district, or by requesting enrollment assistance in a telephonic, electronic or in-person communication with the school district or a school that is operated by the school district. A school district that receives a request for enrollment pursuant to this subsection:

1. Shall submit a completed certificate of educational convenience application for the pupil to the county school superintendent electronically, in person or by regular mail not later than five business days after receiving the request and any required documentation, except that a school district may submit the application by regular mail only if the school district CANNOT electronically submit the application.

2. Is responsible for all child find activities for the pupil.

3. Is responsible for providing a free appropriate public education to the pupil if the pupil is a child with a disability as defined in section 15-761.

4. may not delay child find activities, parental consent for a special education evaluation or timelines under 34 code of federal regulations section 300.301 or 300.323 because a certificate of educational convenience application is processing.

D. Before fiscal year 2027-2028, each state placing agency shall develop a form to attest that a pupil is placed in one of the placements described in subsection B of this section. On request, a state placing agency shall complete the form for the pupil and provide the completed form to the requesting party. The requesting party may submit the completed form with a certificate of educational convenience application to the county school superintendent as evidence of the pupil's eligibility for a certificate of educational convenience pursuant to subsection B or C of this section.

E. If a pupil described in subsection B of this section is parentally placed in a private school or attends a homeschool, the pupil retains the rights established by 20 united states code section 1412, including the rights to be identified, located and evaluated for eligibility under part B of the individuals with disabilities education act, and the right to equitable services under proportionate share funding pursuant to 34 code of federal REGULATIONS sections 300.130 through 300.144. the school district in which the pupil is placed is responsible for identifying, locating and evaluating the pupil and for providing equitable services under proportionate share funding to the pupil.

C. F. A pupil attending school under a certificate of educational convenience issued pursuant to subsection B or C of this section is deemed for the purpose of determining student count to be enrolled in the school district of attendance. The county school superintendent of any county shall not issue a certificate of educational convenience as provided in subsection B or C of this section if the pupil is placed in the same district of the pupil's parents' or legal guardians' residence or if the pupil is placed without a court order and the pupil's parents or legal guardians are not residents of this state.

D. G. If a certificate of educational convenience is issued as provided in subsection B or C of this section, or for a pupil whose parent or guardian is employed and domiciled by a state institution as prescribed by section 15-976, tuition may be charged as follows:

1. For group B children with disabilities:

(a) Who are from unorganized territory, whose parent or guardian is employed by a state institution as prescribed by section 15-976 or who have been issued a certificate of educational convenience pursuant to subsection B or C of this section, the superintendent of public instruction shall reimburse the district of attendance for the excess costs as provided in section 15-824, subsection E, paragraph 4.

(b) Who are from another school district, the school district of residence shall reimburse the district of attendance for the excess costs as provided in section 15-824, subsection E, paragraph 4.

2. For pupils who are precluded from attending a school in this state and who must attend a school in another state:

(a) If the pupil resides in a school district in this state, the district of residence shall pay the amount charged by the district of attendance.

(b) If the pupil resides in unorganized territory, the superintendent of public instruction shall pay the amount charged by the district of attendance.

E. H. The county school superintendent who issues a certificate of educational convenience shall notify the superintendent of public instruction of the issuance of the certificate. The superintendent of public instruction shall draw a warrant in favor of the school district of actual attendance for the amount charged, whether for common or high school attendance, as provided in section 15-824.

F. I. The total amount of state monies that may be spent in any fiscal year by the superintendent of public instruction for certificates of educational convenience shall not exceed the amount appropriated or authorized by section 35-173 for that purpose. This section does not impose a duty on an officer, agent or employee of this state to discharge a responsibility or create any right in a person or group if the discharge or right would require an expenditure of state monies in excess of the expenditure authorized by legislative appropriation for that specific purpose.

J. Each county school superintendent shall:

1. Not later than five business days after receiving a certificate of educational convenience application pursuant to this section, either:

(a) Issue a certificate of educational convenience authorizing the pupil to attend the school district that is identified in the application and notify the school district and the pupil's parent that the certificate has been issued.

(b) Notify in writing the school district that is identified in the application and the pupil's parent that the county school superintendent is not issuing a certificate of educational convenience for the pupil. THE notification required by this subdivision must explain the reason the county school superintendent is declining to issue a certificate of educational convenience and instructions for curing deficiencies in the application.

G. 2. On or before January 1 of each year, each county school superintendent shall report to the department of education the total number of certificates of educational convenience that the county school superintendent issued pursuant to subsection A of this section during the previous calendar year and the total number of certificates of educational convenience that the county school superintendent issued pursuant to subsection B or C of this section during the previous calendar year.

3. Before fiscal year 2027-2028, develop and make publicly available a certificate of educational convenience application form and instructions for submitting the application form. A county school superintendent may develop an online application portal for the purposes of this paragraph if the portal allows any person who may submit an application pursuant to this section, including a school district, a pupil, a pupil's parent, a state placing agency or a pupil's legal representative, to submit an application through the portal.

H. K. The department of education shall maintain the reports received under subsection G J, paragraph 2 of this section and shall post the reports on the department's website.

L. Each school district in this state that adjoins an unorganized territory shall:

1. Include a certificate of educational convenience application form and instructions regarding supporting documentation with proof of residency documentation requirements in enrollment packets.

2. Post on the school district's website both of the following:

(a) The form and instructions described in paragraph 1 of this subsection.

(b) Instructions for parents who elect to submit the applications to the county school superintendent.

M. Enrollment is guaranteed for any pupil for whom a certificate of educational convenience is issued pursuant to this section and is not subject to programmatic capacity limitations.

N. The department of education shall:

1. Develop and adopt a clear, written policy that identifies a supplemental process for prompt resolution of disputes between county school superintendents, parents of pupils and local education agencies, relating to any of the following:

(a) applications for enrollment of pupils pursuant to this section.

(b) The provision of services required pursuant to this chapter and chapter 7, article 4 of this title.

(d) Denials or delays of any of items listed in subdivision (a), (b) or (c) of this paragraph.

2. Ensure all of the following:

(a) That any dispute arising under this section is decided not later than ten business days after the dispute resolution process is initiated.

(b) That a pupil is enrolled in a school district and receives services pursuant to this chapter and chapter 7, article 4 of this title while the dispute is pending.

(c) That the dispute resolution process does not limit or delay a pupil's or parent's access to the state complaint process or due process procedures under the individuals with disabilities education act (20 United States Code sections 1401 through 1485).

3. Investigate any complaints the department receives that allege that a political subdivision or agency is violating this section or section 15-768.

4. Annually compile a report regarding investigations pursuant to paragraph 3 of this subsection and any corrective actions taken in the immediately preceding year and post the report on the department's website.

O. Subsections A and C of this section do not preclude a pupil, a pupil's parent, a state placing agency, a pupil's legal representative or any other interested party from submitting an application for a certificate of educational convenience for the pupil to the county school superintendent.

P. For the purposes of this section:

1. "Child Find" has the same meaning prescribed in section 15-768.

2. "Free appropriate public education" has the same meaning prescribed in section 15-768.

3. "Parent" has the same meaning prescribed in section 15-761.

4. "State placing agency" has the same meaning prescribed in section 15-1181.

5. "Unorganized territory" means a geographic area that is not located within the boundaries of any school district. END_STATUTE

Sec. 6. Section 15-944, Arizona Revised Statutes, is amended to read:

START_STATUTE15-944. Base revenue control limit

A. The base revenue control limit for each school district for fiscal year 1980-1981 is computed as follows:

1. Add the amounts in the fiscal year 1979-1980 budget effective May 15, 1980 for general operating and special education.

2. Subtract the following budgeted revenues from the sum obtained in paragraph 1 of this subsection:

(a) Tuition paid for attendance of nonresident pupils.

(b) State assistance as provided in section 15-976.

(d) Proceeds from the sale or lease of school property as provided in section 15-1102.

3. Add the increase in the base support level from fiscal year 1979-1980 to fiscal year 1980-1981 to the difference obtained in paragraph 2 of this subsection.

B. The equalization factor for each school district is computed as follows:

1. Divide the sum obtained in subsection A, paragraph 3 of this section by the base support level for fiscal year 1980-1981.

2. Subtract 1.0 from the quotient obtained in paragraph 1 of this subsection to obtain the equalization factor.

C. The revenue variation factor for each fiscal year is as follows:

1. For fiscal year 1981-1982, 0.80.

2. For fiscal year 1982-1983, 0.60.

3. For fiscal year 1983-1984, 0.40.

4. For fiscal year 1984-1985, 0.20.

D. The base revenue control limit for each school district during the five years in which the equalization plan is in operation is computed as follows:

1. Multiply the equalization factor by the revenue variation factor for the applicable year. Beginning with fiscal year 1983-1984 if the resulting product is less than negative 0.08, use negative 0.08 for computation purposes as provided in paragraph 2 of this subsection.

2. Multiply the product obtained in paragraph 1 of this subsection by the base support level for the applicable year.

3. Add the base support level for the applicable year to the product obtained in paragraph 2 of this subsection.

E. For fiscal year 1985-1986 and each fiscal year thereafter, the base revenue control limit equals the base support level for the same fiscal year. END_STATUTE

Sec. 7. Section 15-947, Arizona Revised Statutes, is amended to read:

START_STATUTE15-947. Revenue control limit; district support level; general budget limit; unrestricted total capital budget limit; district additional assistance limit

A. The revenue control limit for a school district is equal to the sum of the base revenue control limit determined in section 15-944 and the transportation revenue control limit determined in section 15-946.

B. The district support level for a school district is equal to the sum of the base support level determined in section 15-943 and the transportation support level determined in section 15-945.

C. The general budget limit for each school district, for each fiscal year, is the sum of the following:

1. The maintenance and operations portion of the revenue control limit for the budget year.

2. The maintenance and operation portion of the following amounts:

(a) Amounts that are fully funded by revenues other than a levy of taxes on the taxable property within the school district, as listed below:

(i) Amounts budgeted as the budget balance carryforward as provided in section 15-943.01.

(ii) Tuition revenues for attendance of nonresident pupils.

(iii) State assistance as provided in section 15-976.

(iv) Special education revenues as provided in section 15-825, subsection D G and section 15-1204.

(v) Title VIII of the elementary and secondary education act of 1965 assistance determined for children with disabilities, children with specific learning disabilities, children residing on Indian lands and children residing within the boundaries of an accommodation school that is located on a military reservation and that is classified as a heavily impacted local educational agency pursuant to 20 United States Code section 7703 as provided in section 15-905, subsections K and O.

(vi) Title VIII of the elementary and secondary education act of 1965 administrative costs as provided in section 15-905, subsection P.

(vii) State assistance for excess tuition as provided in section 15-825.01.

(viii) Transportation revenues for attendance of nonresident pupils.

(b) Amounts approved pursuant to an override election as provided in section 15-481 for the applicable fiscal year.

(d) Expenditures for complying with a court order of desegregation as provided in section 15-910.

(e) Interest on registered warrants or tax anticipation notes as provided in section 15-910.

(f) Amounts budgeted for a jointly owned and operated career and technical education and vocational education center as provided in section 15-910.01.

3. The maintenance and operations portion of district additional assistance for the budget year.

4. Any other budget item that is budgeted in the maintenance and operation section of the budget and that is specifically exempt from the revenue control limit or district additional assistance.

D. The unrestricted capital budget limit, for each school district for each fiscal year, is the sum of the following:

1. The federal impact adjustment as determined in section 15-964 for the budget year.

2. Any other budget item that is budgeted in the capital outlay section of the budget and that is specifically exempt from district additional assistance.

3. The unrestricted capital portion of the amounts contained in subsection C of this section.

4. The unexpended budget balance in the unrestricted capital outlay fund from the previous fiscal year.

5. The net interest earned in the unrestricted capital outlay fund from the previous fiscal year. END_STATUTE

Sec. 8. Section 15-976, Arizona Revised Statutes, is amended to read:

START_STATUTE15-976. Assistance for school districts for children whose parents are employed by certain state institutions; expenditure limitation

A. The superintendent of public instruction shall assist school districts in educating children whose parents or legal guardians are employed by and domiciled at the following state institutions and stations: the state hospital, the Arizona state schools for the deaf and the blind, intellectual disability centers, port of entry inspection stations and institutions and facilities maintained by the state department of corrections. The school enrollment is deemed for the purpose of determining student count to be enrollment in the school district of actual attendance. The assistance shall be by payment of tuition as follows:

1. For group B children with disabilities, as provided in section 15-825, subsection D G.

2. For children other than group B children with disabilities, the costs per student count as prescribed in section 15-824, subsection G minus the amount generated by the equalization base as determined in section 15-971, subsection A for those pupils, except that the tuition for any pupil shall not exceed an amount equal to seven thousand dollars $7,000 minus the amount generated by the equalization base as determined in section 15-971, subsection A.

B. Claims for such payments shall be made by the school districts through the county school superintendent to the superintendent of public instruction.

C. The total amount of state monies that may be spent in any fiscal year by the superintendent of public instruction pursuant to subsection A of this section shall not exceed the amount appropriated or authorized by section 35-173 for that purpose. This section shall does not be construed to impose a duty on an officer, agent or employee of this state to discharge a responsibility or to create any right in a person or group if the discharge or right would require an expenditure of state monies in excess of the expenditure authorized by legislative appropriation for that specific purpose.END_STATUTE